Question

Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.70 cup of pure semolina flour. They buy 3,900 cups of flour at $0.50 per cup. They use 3,278 cups of flour to make 4,700 biscuits. The standard cost per cup of flour is $0.48.

A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance? Round your answers to two decimals. Enter all amounts as positive numbers.

Direct materials price variance	$
Direct materials quantity variance	$
Total direct materials cost variance	$

B. What is the standard cost per biscuit for the semolina flour? Round your answer to four decimals.

Answer 1

Answer :(A)

i)Direct Material Price Variance = (Standard Price - Actual Price) X Actual Quantity Used

= ($0.48-$.050) X 3278

= $ 65.56 Unfavorable

ii)Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) X Standard Price

= (3290-3278) X $0.48

= $ 5.76 Favorable

ii) Total Direct Material Variance = ((Total Standard cost) - (Total Actual Cost))

= ((3290X$0.48)-(3278X$0.50)

= ($1579.2-$1639)

= $59.8 Unfavorable

Answer: (B) standard cost per biscuit = Standard Quantity per Biscuit X Standard Price per Biscuit

= 0.70 X $0.48

standard cost per biscuit for the semolina flour = $ 0.3360

Working: Total Standard Quantity = Standard Quantity per Biscuit X Actual Production

= 0.70 X 4700

= 3290

(1.)

Particulars	Amount
Direct Materials Price Variance	$ 65.56 (U)
Direct Materials Quantity Variance	$ 5.76 (F)
Total Direct Materials Cost Variance	$ 59.8 (U)

U= Unfavorable

F= Favorable

(2) Standard Cost per Biscuit for the Semolina Flour = $ 0.3360

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